gleb

Monitoring the situation

The game theory of the money manager is not necessarily the same as yours. Your objectives and your manager's need to be aligned. Crypto is a high beta space and a manager's EV, and your fund's EV are not the same trade. -EV on your money can be +EV for them. The current DeFi market structure incentivises managers to take increasing, mostly uncompensated amounts of risk to capture deposits, grow metrics to pump their TVLs, and their tokens. Due to the inherently risky nature of the space, few people here are looking to play the long game and focus on sustainable business models and risk management. A conflicted manager is a bad manager.

DeFi United is a testament to the resilience of this industry. Huge respect to all the contributors and Aave leadership for putting this together. DeFi Will Win, together

They don't call it the best risk-adjusted yield onchain for no reason

The TAM remains global GDP

Just as in finance, DeFi is not a game of who wins, but instead of who doesn't lose.

New on Stablewatch: YBS bubble map, sized by 365d supply growth. 1. sUSDS: +$3.2B 2. USYC: +$2.4B 3. syrupUSDC: +$824M 4. USDY: +$724M 5. sUSDe: +$548M Top 5 drove 71% of YBS sector growth last year. Pop the bubbles yourself below↓

Adoption will be much harder than anticipated by most, coming to terms with illiquidity, t+2 settlement and opaque backing is a difficult pill to swallow for most onchain allocators. Infrastructure is ready but market appetite is not.

ACI <> Sky era???

Prudent risk management, rational deposit caps and allowing the market to determine the fair rates at all times to allow for a correct liquidity profile pays in the end. Expect Spark to keep stepping up. Safety is non-negotiable when you are the largest depositor.

Plasma is now supported on @tryramp. Get paid in stablecoins, spend in stablecoins, all with Plasma One.

@spreekaway Currently doing my best Trotsky impression in the gc

who is REALLY to blame for the rseth situation: a political compass

SparkLend TVL up 25% in the past 2 days. Billions in liquidity available at ~4.3% to those who want to refinance their Aave loans.

A $290M Kelp exploit just drove $2B out of YBS in 48 hours. That's the largest outflow in the sector's history, 8% of total supply.

Laniakea is a project in Sky to bring all structures of governance and collateral exposure into standardized formats, with strict standardization and best practice optimization across 4 critical dimensions: Smart contracts, risk management, data infrastructure and legal recourse. With Laniakea in place Sky itself will enjoy even greater levels of security, stability and reliability (on top of the protocols current 6 year track record of no security incidents) External protocols and projects will also be able to use the Laniakea building blocks to develop financial products and businesses through Sky Agents that inherits the best in class smart contracts, risk management, data infrastructure and legal structures - protecting their users and boosting their business case. github.com/sky-ecosystem/…

Operating team investment / partner / client disclosures are going to become ever more important to avoid similar principal agent problems. Anyone with experience in TradFi knows the immense burden of compliance however these procedures exist for a reason.

When you’re the main LP in your own product the incentive structure is completely different Keep that in mind when giving up your hard earned money to protocols